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The Politics of Economic Reform in Thailand: Crisis and Compromise

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Author Info
Allen Hicken ()
Abstract

What explains the varying responses by Thai governments to changes in the international economic environment over time. To answer this the paper emphasizes the link between the nature of the political structure/policymaking environment and the government’s reform capacity. Thailand’s political structure typically undercuts the government’s reform capacity in two way. First, it is difficult to get needed reforms on the political agenda. Second, it is even harder to push reforms through the policy process to implementation. During the 1980s, Thailand was able to overcome some of the challenges inherent in its political system via an informal compromise between party politicians and technocratic reformers. This ‘pork-policy compromise’ gave the government the capacity to adopt certain reforms—reforms that laid the foundation for the economic boom of the late 1980s and early 1990s. Changes in the political structure in the late 1980s brought an end to this compromise, thereby reducing the government’s reform capacity.

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Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 2004-638.

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Length: 33 pages
Date of creation: 01 Jan 2004
Date of revision:
Handle: RePEc:wdi:papers:2004-638

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Related research
Keywords: Thailand; reform; political economy; capacity;

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Find related papers by JEL classification:
H1 - Public Economics - - Structure and Scope of Government
H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
H4 - Public Economics - - Publicly Provided Goods

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  1. Ruben Enikolopov & Ekaterina Zhuravskaya, 2006. "Decentralization and Political Institutions," Working Papers w0065, Center for Economic and Financial Research (CEFIR). [Downloadable!]
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